**FEMA Suspends Payments to NYC for Migrant Housing Following Musk’s Criticism**
**Washington, D.C.** – The acting head of the Federal Emergency Management Agency (FEMA) announced Monday that payments to New York City for migrant housing have been suspended. This decision follows criticism from Elon Musk, who raised concerns about the transactions on his social media platform.
Musk, who leads the Department of Government Efficiency and has been working to reduce federal spending and workforce size, claimed on X that FEMA had allocated $59 million last week to luxury hotels in New York City for housing migrants. He asserted that these funds were meant for disaster relief and would be reclaimed.
Cameron Hamilton, FEMA’s acting administrator, confirmed the suspension of payments on Sunday, reposting Musk’s comments. However, Musk did not provide evidence for his claim. New York City officials stated that the funds were allocated by Congress last year and were intended to support migrant care.
Liz Garcia, a spokesperson for the city, said they had not been informed of any funding suspension. She emphasized that the city has continued receiving federal reimbursements and would discuss the issue with federal officials.
While neither Musk nor Hamilton specified the nature of the payments, they likely referred to the Shelter and Services Program. This initiative reimburses cities and organizations for immigration-related expenses. FEMA administers these payments, though the funds originate from Congress and are designated for Customs and Border Protection.
FEMA did not respond to inquiries, but Trisha McLaughlin, a spokesperson for the Department of Homeland Security, cited Secretary Kristi Noem’s recent statements. Noem has advocated for a major overhaul of FEMA, calling the payments an “egregious example” of mismanagement. She stated that individuals responsible for the transactions would be fired.
### Background on Migrant Housing Funds
When migrants arrive at the U.S. border, many are released due to insufficient federal detention space. Local and state governments, along with nonprofits, often bear the responsibility of providing shelter and resources.
In response to a surge in border crossings in 2019, Congress authorized federal reimbursements for these costs, leading to the creation of the Shelter and Services Program. The funds are separate from FEMA’s disaster relief budget, which assists communities affected by natural disasters.
Republicans have criticized the program, arguing that it diverts resources from disaster victims. Some have also questioned whether taxpayer money should support cities with right-to-shelter laws, which require housing for all homeless individuals.
### Uncertainty Over Funding
At least two other local governments receiving Shelter and Services Program funds reported no communication from federal officials about potential funding withdrawals.
Musk described the $59 million payment as a violation of the President’s executive order and vowed to recover the funds. However, the source of this figure remains unclear.
New York City officials reported receiving $81 million in federal reimbursements last week, including $59 million for migrant-related expenses, with $19 million specifically allocated for hotel costs. The city’s right-to-shelter laws require it to provide housing for homeless individuals, and hotels have historically been used for this purpose.
Since spring 2022, approximately 230,000 migrants have arrived in New York City, straining local resources. The city currently shelters around 46,000 migrants, primarily families, using hotels and temporary tent facilities.
### Musk’s Claims on Luxury Hotels Disputed
Musk alleged that FEMA, under the Biden administration, diverted disaster relief funds to pay for luxury accommodations for migrants. However, city officials refuted this claim.
Garcia stated that New York City does not pay luxury rates for migrant housing. According to a 2024 city comptroller report, the average hotel cost per night is $152, significantly lower than the rates of five-star hotels in Manhattan, which range from $400 to over $1,000 per night.
She added that the $81 million in federal reimbursements covered costs from November 2023 to October 2024, including hotel stays, security, and food. The city applied for these funds in April, and they were allocated by Congress last year.
### FEMA’s Future Under Scrutiny
The controversy over these payments comes amid growing debate about FEMA’s role.
Last month, President Trump suggested eliminating FEMA and launched a task force to conduct a comprehensive review of the agency.
Republicans have criticized FEMA for its response to recent hurricanes, accusing it of failing to provide adequate aid. The agency also faced backlash after reports surfaced that a staffer had instructed workers to avoid homes displaying Trump campaign signs.
Hamilton, a former Navy SEAL and Republican congressional candidate, has been vocal about FEMA’s shortcomings and has advocated for reallocating resources to border security.
A conservative policy blueprint, *Project 2025*, has proposed dismantling the Department of Homeland Security and relocating FEMA under the Department of Interior or Transportation. The plan also suggests shifting disaster response costs to state governments.
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*Reporting by Attanasio from New York.*
Source: abcnews.go.com